EUR/GBP has changed little today, but most likely we’ll have an important movement in the upcoming days after the price will escape from the descending triangle. The pair was into a corrective phase, the downside was stopped by the 0.8682 level and now is fighting hard to confirm a potential upside movement.
It is trapped within an extended sideways movement, so you should wait for a valid breakout and for a fresh signal before taking action. It seems that the sentiment has changed and that EUR/USD attracts more buyers in the short term after the price has failed to retest the support area.
You can see that the pair is traded right above the PP (0.8759) level and it could try once again to break above the descending triangle’s resistance. It has tested and retested the 0.8682 and now EUR/GBP has stabilized above the inside sliding line (SL – descending dotted line).
Maybe a breakout from the descending triangle will need to be followed by a valid breakout above the median line (ML) of the descending pitchfork and above the R1 (0.8848) level to confirm a larger increase. Personally, I believe that if the price closes above the 0.8806 former high, the scenario presented above will take shape.
A potential leg higher will be invalidated by another false breakout from the chart pattern and if EUR/GBP registers a valid breakdown below the 0.8682 and below the SL.
EURGBP TRADING TIPS
EUR/GBP could increase significantly if it closes and stabilizes above the median line (ML) and above the R1 (0.8848). The next upside targets are seen at the R (0.8999) and at R3 (0.9088) levels. Also, a valid breakout above the 0.8806 high will signal a long opportunity.
Another false upside breakout from the descending triangle could suggest and announce a drop towards the sliding line (SL) and towards the 0.8682 static support. You could go short if EUR/GBP closes and stabilizes below the 0.8682 level, the downside targets are seen at S1 (0.8607), S2 (0.8518), and at S3 (0.8366).
The material has been provided by InstaForex Company – www.instaforex.com
EUR/GBP has changed little today, but most likely we’ll have an important movement in the upcoming days after the price will escape from the descending triangle. The pair was into a corrective phase, the downside was stopped by the 0.8682 level and now is fighting hard to confirm a potential upside movement.
It is trapped within an extended sideways movement, so you should wait for a valid breakout and for a fresh signal before taking action. It seems that the sentiment has changed and that EUR/USD attracts more buyers in the short term after the price has failed to retest the support area.
You can see that the pair is traded right above the PP (0.8759) level and it could try once again to break above the descending triangle’s resistance. It has tested and retested the 0.8682 and now EUR/GBP has stabilized above the inside sliding line (SL – descending dotted line).
Maybe a breakout from the descending triangle will need to be followed by a valid breakout above the median line (ML) of the descending pitchfork and above the R1 (0.8848) level to confirm a larger increase. Personally, I believe that if the price closes above the 0.8806 former high, the scenario presented above will take shape.
A potential leg higher will be invalidated by another false breakout from the chart pattern and if EUR/GBP registers a valid breakdown below the 0.8682 and below the SL.
EUR/GBP could increase significantly if it closes and stabilizes above the median line (ML) and above the R1 (0.8848). The next upside targets are seen at the R (0.8999) and at R3 (0.9088) levels. Also, a valid breakout above the 0.8806 high will signal a long opportunity.
Another false upside breakout from the descending triangle could suggest and announce a drop towards the sliding line (SL) and towards the 0.8682 static support. You could go short if EUR/GBP closes and stabilizes below the 0.8682 level, the downside targets are seen at S1 (0.8607), S2 (0.8518), and at S3 (0.8366).
The material has been provided by InstaForex Company – www.instaforex.com
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